HONG KONG

Fong Kong

SSCRET

Mr. M

PEKING AFD POLAD SINGAPORE

Peking

Polad Singapore

Your telegram No. 2031 and Peking telegram

No. 906 - Grey.

We agree that there is no prospect of progress towards Grey'e release by bargaining through contact and that the risks of persisting in the attempt to negotiate an exchange in this

way would not be justified.

This is indeed a

setback in our efforts to help Gray.

But we agree

that in the circumstances your instructions to Cater (para. 2 of your tel. under reference)

were wholly appropriate.

2.

With regard to other possible methods of making progrend, wo share the view that the clements outlined in para. 5 of Peking tel. No. 906 are probably all relevant in a general

But their application way to the release of Grey.

is a matter of judgement at any particular time.

/Our

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